Nov. 28, 2013

Jim Fouts

Written by

Detroit Free Press Staff Writer

Warren Mayor Jim Fouts has instituted a new policy that prohibits the city’s inspectors, along with his political appointees, from buying rental property within the city limits.

The policy was enacted by Fouts in an October memo sent to inspectors and verbally given to political appointees. The policy applies to city building, property maintenance or rental inspectors and any limited liability company with which they are affiliated.

Fouts said the policy could be a model for other cities. Warren, with a population of 134,000, is the state’s third largest city.

But Robert Sedler, an expert in constitutional law at Wayne State University, said if the policy were challenged in court, a judge would find it unconstitutional.

But, he said, the policy can only be challenged by someone who is hurt by it — the employees who want to lease rental property or who own rental property.

“One of the things about living under a Constitution is that sometimes policies that are well-intended are not permissible because they violate Constitutional rights,” Sedler said.

Fouts said the new policy is to “eliminate an appearance of a conflict of interest or impropriety.” He said rental property owned by inspectors and appointees before the policy took effect would be grandfathered in.

In his memo, Fouts said there is no allegation or evidence that any inspector did anything improper or unethical regarding the inspection of rental homes. The mayor said the new policy affects about 40 inspectors and more than 40 political appointees, including the police and fire commissioners and department heads.

The idea for the policy came up after concerns were raised by City Councilwoman Kelly Colegio. She said she brought to the administration’s attention a conversation with an inspector, who told her about buying property off of a bulk property purchase list.

She was concerned other inspectors would purchase properties off bulk property lists and rent them; yet they inspect the properties on the list.

She said she doesn’t have a problem with inspectors buying rental homes, but she would want them to step aside if they had done business with the person or business whose properties are coming before the nuisance abatement board and possibly demolished with NSP funds.

Jack Williams, president of the Southeast Michigan Building Officials and Inspectors Association, had not heard of a similar policy being enacted elsewhere. However, he said, inspectors cannot inspect their own properties.

Fouts said some inspectors may not be “real excited” about the policy, “nonetheless, it’s the right thing to do.”